Lawmakers flag gaps in proposed changes to building management rules after Tai Po fire

Hong Kong lawmakers have expressed concerns about potential loopholes in proposed changes to building management rules, despite a government push to tighten oversight following the tragic Tai Po fire. These warnings coincided with the announcement of a second wave of raids by the Competition Commission on a bid-rigging case involving 28 housing estates and buildings valued at approximately HK$500 million (US$63.7 million).

The government has intensified enforcement against problematic contractors and enhanced building maintenance procedures since the devastating fire at Wang Fuk Court that claimed 168 lives last November. Authorities initiated a month-long consultation to gather feedback on five major amendments to the Building Management Ordinance.

Lawmaker Bill Tang Ka-piu highlighted the need to strengthen building management protections for individual owners while balancing the challenges of limited owner attendance at meetings. He expressed concerns about whether the new proxy vote regulations would address other issues, such as changes in management companies and elections of incorporated owners. Tang also questioned the effectiveness of dividing quorum and voting requirements based on project prices, suggesting it could create loopholes for bid-rigging.

Chris Ip Ngo-tung, another lawmaker, called for stricter rules to verify proxies and prevent bid-rigging syndicates from exploiting false instruments to secure votes. He supported limiting proxies to owners' family members or fellow owners but raised concerns about the implementation challenges, particularly for elderly owners who may not have relatives to vote on their behalf.

The Competition Commission announced the second round of enforcement actions, targeting 12 premises in connection with the bid-rigging case that began in January. The second round followed the discovery of suspicious text messages exposing another hidden bid-rigging syndicate, which involved contracts worth about HK$500 million across multiple maintenance projects.